Spain’s June Power Demand Surge Sparks 320% Price Spike To €102/MWh

Due to the extremely high temperatures in June, the national electricity demand in Spain increased by 10.5% year-on-year. The average in June was 23.6°C, exceeding the historical average of July and August. Electricity demand rose at all times of the day, with the largest increase of 16% during the midday period. Although solar power remained the top source for the second consecutive month, accounting for 26.0%, it was insufficient to cover the peak load. Wind power output decreased by 27.8% year-on-year, and hydropower was also insufficient, resulting in a 113.8% year-on-year increase in gas combined cycle power generation, which became the second largest power source (19.7%), surpassing nuclear power (17.8%).

 

Due to the influence of the restricted electricity structure, the electricity price during non-lighting hours increased by as much as 320%, reaching a peak of over €102/MWh, far exceeding the average electricity price of €26.02/MWh during sunny hours. The overall average wholesale electricity price of the market reached €72.60/MWh, doubling compared to April and May.

 

In the first week of July, the national average daily electricity consumption increased by another 125GWh, rising by 16.5% year-on-year. It is expected that the contribution of wind power and hydropower to power generation in summer will decline by more than 40%, creating a "heat gap" that will continue to drive the CCG to dominate the electricity price mechanism. According to the prediction model of Grupo ASE, the average price in July may reach €86/MWh, a 20% increase compared to the previous month, and the upward pressure on electricity prices will continue.